How to Account for Spare Parts under IFRS
One of the biggest issues related to property, plant and equipment is accounting for spare parts, servicing equipment, stand-by equipment and similar items. IFRS standards are pretty silent about this topic, the guidance is very limited and as a result, companies need to rely on…
The Quick Guide to IFRS 7 Risk Disclosures
The financial instruments belong to the most complicated and difficult areas in IFRS and therefore, I dedicated many articles to making the things understandable a bit. However, until now, we haven’t even touched the complexity of the disclosures about financial instruments as required by IFRS…
When to start depreciation?
After graduating from a university I started my career in a famous, then Big 5 audit company. If you work in auditing I bet you got the worst tasks and assignments during your first year at work! Just as I did. I remember taking part…
Tax Incentives – IAS 12 or IAS 20?
In my previous article about accounting for government grants I asked you to give me some feedback and write me about some problems or issues in this area. Surprisingly, most of your responses asked one and the same question: How to account for tax incentives…
How to Account for Government Grants (IAS 20)
Almost every government supports certain companies or business by providing grants or other kind of assistance. As this is clear benefit and advantage comparing with other companies without such an assistance, it should be properly reported in the financial statements. How? Let’s explain the rules…
Current or Non-Current?
Most balance sheets present individual items in distinction to current and non-current (except for banks and similar institutions). This seems so basic and obvious that most of us do not really think about classifying individual assets and liabilities as current and non-current. We do it…
How to Account for Employee Loans (interest-free or below-market interest)
After I wrote an article about capitalizing borrowing cost, I got a lot of e-mails asking me actually HOW to account for loans that do not bear the interest rate reflecting market conditions. In other words, how to account for loans at below-market interest rate,…
Monetary or Non-Monetary?
When you need to translate your items denominated in foreign currency to your own functional currency, then there’s one little problem: Is that item monetary or non-monetary? If you determine the nature of your item incorrectly, it can lead to totally wrong presentation in the…
How to Account for Provisions – Practical Questions
Today, let’s be practical. A couple of weeks ago, I published an article about IAS 37 Provisions, Contingent Liabilities and Contingent Assets. I received a lot of questions from you, so here I try to give you my answers to the issues that popped out…
How to Capitalize Borrowing Costs under IAS 23
Should you capitalize or not? When it comes to determining the cost of your assets, most standards ask to include all directly attributable items. What about interest and other borrowing costs? Did you know that if you have 10 dollars in your pocket and no…
Recent Comments
- Silvia on Our machines are fully depreciated, but we still use them! What shall we do?
- Silvia on How to Account for Government Grants (IAS 20)
- Colin on How to Account for Government Grants (IAS 20)
- ZIAD on How to Measure Fair Value in Agriculture – IAS 41 and IFRS 13
- ZIAD on How to Measure Fair Value in Agriculture – IAS 41 and IFRS 13
Categories
- About IFRS (15)
- Accounting estimates (IAS 8) (5)
- Accounting policies (4)
- Consolidation and Groups (21)
- Employees (8)
- FAQ (1)
- Financial Instruments (47)
- Financial Statements (26)
- Foreign currency (9)
- How To (18)
- IFRS Accounting (65)
- IFRS Summaries (28)
- IFRS videos (41)
- Impairment of assets (6)
- Income Tax (9)
- Intangible assets (8)
- Inventories (14)
- Leases (17)
- Most popular (6)
- Not just IFRS (10)
- Podcast (35)
- PPE (IAS 16 and related) (39)
- Provisions and Contingencies (5)
- Revenue recognition (19)
- Sectors&Industries (4)
- Uncategorized (2)
- US GAAP (3)